As global longevity increases, how do we ensure workers and economies thrive?

Since becoming CEO of Mercer, I’ve travelled to more than 20 countries and met with C-suite executives and policy-makers worldwide. One topic they consistently bring up – and can universally relate to – is increasing longevity.

That may surprise most people, but it doesn’t shock me.

For years, Mercer has been following statistics on longevity. By 2050, the number of individuals aged 60 and older is projected to reach 2.1 billion – nearly double today’s figure.

The rise is driven by significantly longer life expectancies than in previous generations. This is great news, but because it’s happening alongside falling fertility rates in most parts of the world, it comes with implications that we need to watch closely.

A ballooning older population will test the readiness of both retirement and healthcare systems. And without enough young people to replace older, retiring workers, companies will struggle to fill the jobs they need to grow their businesses and fuel GDP growth.

While this increased lifespan-lower fertility double punch lacks the urgency of a wildfire or the excitement of the latest AI innovation, this slow-moving trend is setting us up for major social and economic crises if we don’t act fast.

Unfortunately, it’s clear the business community is not properly prepared. According to Mercer’s 2025 Executive Outlook Study, 80% of executives believe they can be doing more to mitigate the risks of an ageing workforce.

What’s the answer? I believe the only way we can ensure that living longer is a boon to economies rather than a burden is to ensure that the public and private sectors work together to develop strategic responses in three key areas: healthcare, workforce and retirement.

It's a fact of life that as we age, we become increasingly susceptible to health problems. In the future, many people will live with a chronic illness for at least one-fifth of their lives.

All of this will place growing demands on healthcare and long-term care systems around the world, impacting quality and access for patients everywhere. When state-funded healthcare systems become too burdened, the private sector will have to pick up the slack to keep older workers healthy.

Reduced resources may also increase pressure on those who are often the primary caretakers of the sick and elderly – their adult children, and more often women, who may be forced to take time out of the workforce.

Businesses will need to carefully examine their employee benefit plans. By offering comprehensive health benefits and encouraging preventive healthcare, employers can help sustain a more productive and engaged older workforce and support younger generations’ ability to work and save for longer.

Employers can also help their employees plan for longer-term elder care, whether for themselves or loved ones, by offering access to long-term care insurance. According to employees, employers are the most trusted source for affordable, quality healthcare worldwide, making them well-positioned to offer this coverage. And it eases the pressure on public care systems.

Lower birth rates will ultimately lead to fewer people entering the workforce. To remain efficient and keep the world’s economies strong, we need to get creative.

One solution is to find ways to entice older workers to stay in, or return to, the workforce. Phased retirements, job-sharing programmes and flexibility with hours and location would all appeal to this demographic.

To boost productivity through a smaller workforce, or an older one that is working less, technology, particularly artificial intelligence (AI), can play a significant role. Employers need to augment with AI and prioritize reskilling, training and reconstructing jobs.

Governments can also consider incentives to encourage retirees to re-enter the workforce or retrain for new jobs. Singapore introduced a Part-Time Re-employment Grant in 2020 as part of a Senior Worker Support Package. This incentivizes employers to offer part-time re-employment or other flexible work arrangements to senior workers.

The Danish government invests significantly in education and training, with more than 20% of the workforce participating in adult education programmes in 2023. Similarly, France offers lifelong “learning accounts” that citizens can use to get credits for reskilling or professional training at any point in their lives.

Increased longevity places pressure on retirement systems to support longer lifespans. Without robust retirement systems, hundreds of millions of retirees could face poverty by 2080, resulting in reduced spending and lower GDP.

The situation is most dire for women, who often live longer, earn less and take more time away from their careers to care for families. While men are on track to outlive their retirement savings by a decade in some developed economies, the number is even higher for women, at 12 to 19 years.

Whether through their employers or government systems, people living longer should save through compulsory high-quality investment vehicles and strategies designed for different stages of life.

Some pension systems aren’t ready to fund a population with an increasing number of retirees without reforms. Others can provide lessons for the rest of the world.

The Netherlands recently increased the sustainability of its pension system, transitioning from a defined benefit, or guaranteed retirement benefit, to a defined contribution system where an individual’s final pension benefit depends on their individual contributions.

In Chile, policy-makers adjusted for women’s longer lifespans by allowing women to receive retirement benefits after just 10 years of retirement contributions (vs. 20 years for men).

Financial sector and public policy innovations like the UK’s Mansion House Accord, which facilitates UK savers’ access to higher potential net returns from investment in private markets, enable countries to better meet the long-term financial needs of their citizens.

In summary, increased longevity is a fantastic thing. We just need to act… and fast. If we start now, we can weather these demographic headwinds to help people live longer, healthier, and more financially resilient lives, while also ensuring businesses and economies thrive.